Adsense

Thursday, May 29, 2014

Weekly Trading Forecasts on Major Pairs (June 2 - 6, 2014)

Here’s the market outlook for the week:

EURUSD

Dominant
bias: Bearish

This market has been moving downwards in a
slow and tardy manner. Since early May 2014, the downward move that begun has
taken the market down by over 380 pips. With the Bearish Confirmation Pattern
in the chart, it is rational to expect that the downward move could continue,
although the possibility of a transitory rally cannot be ruled out on the way.
The support line at 1.3500 is our target for the next week.

USDCHF

Dominant bias: Bullish

This currency trading instrument has been
caught in a slow and tardy mode also. After the ‘buy’ signal was generated
earlier in the month of May 2014, the price has moved upwards by over 270 pips.
Now, the possibility of the price moving higher cannot be ruled out, for the
northward bias has been established. There could, nevertheless, be some
pullbacks in the market along the way, but they ought not to take the price
below the support levels at 0.8950 and 0.8900. Any movement below the support
levels (especially the latter one) would mean the end of the northward bias. In
the meantime, the price may trudge towards our target at the resistance level
of 0.9000. It may even break it to the upside and move towards another
resistance level at 0.9050.

GBPUSD

Dominant
bias: Bearish

The
Cable gave a spurious ‘buy’ signal last week. Because the price was unable to
move higher and break the accumulation territory at 1.6900 to the upside, the
Cable skydived and tested the accumulation territory at 1.6700. The ‘sell’
signal in the market has been confirmed: the price could continue trading
lower, with the probability of reaching another accumulation territory at
1.6650.

USDJPY

Dominant bias: Bearish

This is a
difficult market – a market in which false breakouts are no longer a curiosity.
In addition, sustained trending moves are rather rare. Unless one is scalping
or speculating on intraday basis, one may think of getting out of the market
until a determined movement occurs. When it does occur, it is more probable
that the price would go lower.

EURJPY

Dominant bias: Bearish

Since early May 2014, the cross has gone down by close to
400 pips. The bearish outlook is still valid and may continue till next week,
reaching a target at 137.00. It is rational to sell the cross on rallies.

This forecast is concluded with the quote below:

“The key word here is patience. If you're using the
correct strategies, you can be sure that [a] bad run will end, it’s only a
matter of time.”- Marcus de Maria